PROJECT REPORT

ON

GENERAL ENGINEERING FABRICATION

Works(Proposed)

A BLOCK, AUTONAGAR, APIIC, VISAKHAPATNAM

 THE PROJECT AT A GLANCE:

1. Name of the firm. : Sree Lakshmi Avnita Enterprises

2. Works (To be procured). : Plot in A Block, Autonagar, APIIC,

Visakhapatnam

3. Name of the promoter. : Smt Ch. Sree Lakshmi

4. Constitution. : Proprietor

5. Sector. : Medium

6. Line of activity. : Engineering Fabrication

7. Project cost & Means of Finance:

(Rs. in lacs)

Project Cost Amount Means of Finance Amount

Land 175.00 Capital 222.50
(To be
procured)
Buildings 150.00
Plant & Machinery 300.00 Term loan 452.50
Working Capital 50.00
Margin
Total 675.00 Total 675.00

Promoter contribution: 32.96%

Debts/Equity : 2.03:1
 Introduction

Fabrication may refer to:

 Manufacturing, specifically the crafting of individual parts as a solo product or as part

of a larger combined product

Metal fabrication is the building of metal structures by cutting, bending, and assembling processes.

 It is a value added process that involves the creation of machines, parts, and
structures from various raw materials. A fabrication shop will bid on a job, usually based on
the engineering drawings, and if awarded the contract will build the product. Large fab shops employ
a multitude of value added processes in one plant or facility including welding, cutting, forming and
machining. These large fab shops offer additional value to their customers by limiting the need for
purchasing personnel to locate multiple vendors for different services. Metal fabrication jobs usually
start with shop drawings including precise measurements, then move to the fabrication stage and
finally to the installation of the final project. Fabrication shops are employed
by contractors, OEMs and VARs. Typical projects include loose parts, structural frames for buildings
and heavy equipment, and stairs and hand railings for buildings

The machine industry or machinery industry is a subsector of the industry, that produces and
maintains machines for consumers, the industry, and most other companies in the economy.

 This machine industry traditionally belongs to the heavy industry. Nowadays, many
smaller companies in this branch are considered part of the light industry. Most manufacturers in the
machinery industry are called machine factories.
 SCOPE OF THE PROJECT

The Project envisages setting up of a unit for the Engineering Fabrication unit at Proposed area at A
Block, Autonagar, APIIC, Visakhapatnam dist the total cost of the Project at Rs. 675.00 lacs. The
installed capacity of the unit is 1116.00 lacs worth of Works on 300 days working on 8 hrs /day. The
operating capacity of the unit is assuming 60%, 70%, 80%. In the first three consecutive years.

CONSTITUTION & SECTOR:

The proposed unit by name and style Sree Lakshmi Avnita Enterprises .A Proprietory concern, the main
object of the unit is to Engineering Fabrication. The unit comes under Medium Sector
 Background of the Promoter

Smt Sree Lakshmi Ch. D/o Sri Ch. Satyanarayana aged 34 years residing at D No 9-5-32,
Jogavanipalem, High School Road, Gajuwaka, Visakhapatnam. She is a graduate. She is an income
tax assesse. She is having some sort of experience in the same line of activity. She can raise funds as
and when necessary to build up the business. She is the Sole Proprietrix of the unit.

NAME CH SREE LAKSHMI

FATHERS NAME CH SATYANARAYANA
ADDRESS FOR 9-5-32, JOGAVANIPALEM, HIGH SCHOOL,
COMMUNICATION GAJUWAKA, VISAKHAPATNAM
CELL NO 9866178372
EMAIL ID Sree15.dba@gmail.com

AADHAR CARD 7354 6866 2442

PAN CARD BSGPC2329M

PROCESS
  Cutting is done by sawing, shearing, or chiseling (all
with manual and powered variants); torching with hand-held torches (such as oxy-fuel
torches or plasma torches); and via numerical control (CNC) cutters (using a laser, mill bits,
torch, or water jet).
 Bending is done by hammering (manual or powered) or via press brakes and
similar tools. Modern metal fabricators use press brakes to either coin or air-bend metal sheet
into form. CNC-controlled backgauges use hard stops to position cut parts in order to place
bend lines in the correct position. Off-line programming software now makes programming
the CNC-controlled press brakes seamless and very efficient.
 Assembling (joining of the pieces) is done by welding, binding
with adhesives, riveting, threaded fasteners, or even yet more bending in the form of a
crimped seam. Structural steel and sheet metal are the usual starting materials for
fabrication, along with the welding wire, flux, and fasteners that will join the cut pieces. As
with other manufacturing processes, both human labor and automation are commonly used.
The product resulting from fabrication may be called a fabrication. Shops that specialize in
this type of metal work are called fab shops. The end products of other common types of
metalworking, such as machining, metal stamping, forging, and casting, may be similar in
shape and function, but those processes are not classified as fabrication.
Fabrication comprises or overlaps with various metalworking specialties:

 Fabrication shops and machine shops have overlapping capabilities, but

fabrication shops generally concentrate on metal preparation and assembly as described
above. By comparison, machine shops also cut metal, but they are more concerned with the
machining of parts on machine tools. Firms that encompass both fab work and machining are
also common.
 Blacksmithing has always involved fabrication, although it was not always called
by that name.
 The products produced by welders, which are often referred to as weldments, are
an example of fabrication.
 Boilermakers originally specialized in boilers, leading to their trade's name, but
the term as used today has a broader meaning.
 Similarly, millwrights originally specialized in setting up grain mills and saw mills,
but today they may be called upon for a broad range of fabrication work.
 Ironworkers, also known as steel erectors, also engage in fabrication. Often the
fabrications for structural work begin as prefabricated segments in a fab shop, then are

Cutting and burning

The raw material has to be cut to size. This is done with a variety of tools.

The most common way to cut material is by shearing.

Special band saws designed for cutting metal have hardened blades and a feed mechanism
for even cutting. Abrasive cut-off saws, also known as chop saws, are similar to miter saws but
have a steel-cutting abrasive disk. Cutting torches can cut very large sections of steel with little
effort.

Burn tables are CNC cutting torches, usually natural gas powered. Plasma and laser
cutting tables, and water jet cutters, are also common. Plate steel is loaded on a table and the
parts are cut out as programmed. The support table is made of a grid of bars that can be
 replaced. Some expensive burn tables also include CNC punch capability, with a carousel of
different punches and taps. Fabrication of structural steel by plasma and laser
cutting introduces robots to move the cutting head in three dimensions around the material to
be cut.

Forming
Forming is an operation that converts a flat sheet metal work piece into a 3-D part. [3] In this
process, a raw material piece is formed by applying force to an object without adding or
removing material. The force must be great enough to change the object's initial shape. The
process of forming can be controlled with the use of tools such as punches or dies. Machinery
can also be used to regulate force magnitude and direction. An example of machine-based
forming can also combine forming and welding to produce lengths of fabricated sheeting, most
commonly seen in the form of linear grating (used principally for water drainage).

Proper design and use of tools with machinery creates a repeatable form which can be used to
create products for many industries, including jewelry, aerospace, automotive, construction,
civil and architectural.

Machining

Machining is the process of removing unwanted material from the block of metal to get the
desired shape. Machining is a trade in and of itself, although fab shops generally entail a limited
machining capability including metal lathes, mills, and drills, along with other portable metal
working tools.

Most components such as gears, bolts, screws, and nuts are manufactured by a machining
process.

Welding
Welding is the main focus of steel fabrication. The formed and machined parts will be
assembled and tack welded into place then re-checked for accuracy. A fixture may be used to
locate parts for welding if multiple weldments have been ordered.

The welder then completes welding as per the engineering drawings if welding is detailed, or as
per his/her own judgement if no welding details are provided.

Special precautions may be needed to prevent warping of the weldment due to heat. These may
include re-designing the weldment to use less weld, welding in a staggered fashion, using a
stout fixture, covering the weldment in sand during cooling, and straightening operations after
welding.

Straightening of warped steel weldments is done with an oxy-acetylene torch and is somewhat
of an art. Heat is selectively applied to the steel in a slow, linear sweep. The steel will have a net
contraction, upon cooling, in the direction of the sweep. A highly skilled welder can remove
significant warpage using this technique.
Steel weldments are occasionally annealed in a low-temperature oven to relieve residual
stresses. Such weldments, particularly those employed for engine blocks, may be line-bored
after heat treatment.

Final assembly
After the weldment has cooled it is generally sand blasted, primed and painted. Any additional
manufacturing specified by the customer is then completed. The finished product is
then inspected and shipped.

MARKETING
Fabrication Market report offers the most up-to-date industry analysis on the current market
condition, and growth potential of Fabrication industry. The report includes significant data from
past 5 years and forecasts by 2022, which makes this Fabrication Industry market report a vital
resource for industry analyst, leading players, consultants, analysts, and other individuals
looking for key market data eagerly available with clearly presented tables and graphs.
Next part of Fabrication Industry Market report is about key manufacturers in the industry with
their revenue analysis and company profiles, business strategies which helps investors in
making an effective and impactable new strategies.
A competitive landscape of following Fabrication Industry manufacturers:
Amada, TRUMPF, Dalian Machine Tool Group, DMG Mori, U.S. Industrial Machinery, Allied
Machine & Engineering, Fair Friend Group, Doosan Infracore, FANUC, Haas Automation,
Hardinge, Sandvik
Fabrication Industry Market Segmentation by Product Types: Laser Machine, CNC Bending
Machine, Cutting Plate Machine, CNC Punch Press, Others
Market Segmentation by Applications: Industrial Automation, Aerospace and Defense,
Automotive, Chemicals and Materials, Heavy Industry
This report integrates forthcoming stream of the Fabrication Industry market organized with an
analysis of current industry. Report describes the Sheet Metal Fabrication Machines market
scope with the aspects governing market growth. Also, the report clarifies numerous challenges
that affects Sheet Metal Fabrication Machines industry development.
After providing introducing analysis of Fabrication Industry market, the report also holds the
segmentation of market based on types, end user applications and region wise statistical data
for new entrants and the investor with the growth analysis and forecast up to upcoming years.
Additionally, this report covers the latest industry data like size of Fabrication Industry market,
region wise growth analysis, trends and improvements in the Fabrication Industry industry,
periodic analysis of past five years and forecast of upcoming years in terms of demand and
supply with economic growth factor.

LOCATION AND ADVANTAGES

 Land: The proposed location of the unit is situated at A Block, Autonagar, APIIC, Visakhapatnam dist.
(To be Procured). The location of the industry has considerable influence on the techno- economical
facility of the project. There are various factors contributing the functioning of an industry and following
are the primary factors taken into consideration.

Reasons for Selection of the Site:

 Adequate Raw Materials
 Adequate labor at economical rate.
 Adequate supply of water throughout the year.
 The site is well connected with road facility.
 Banking facilities and Government supports.
 Adequate Transport facilities for economical transportation of finished product and spare parts.
 Nearest to the market

PROJECT COST AND MEANS OF FINANCE

Project Cost Amount Means of Finance Amount
Land 175.00 Capital 222.50
(To be
procured)
Buildings 150.00
Plant & Machinery 300.00 Term loan 452.5
0
Working Capital 50.00
Margin
Total 675.00 Total 675.00

DETAILED NOTES ON PROJECT COST

  Land: The promoter has to be procured the land at A Block, Autonagar, APIIC,
Visakhapatnam
 The proposed location is very ideal for the proposed unit.
 Buildings: The promoter have to be construct civil constructions worth of Rs. 150.00 lacs
with all necessary amenities.
 Machinery: All the machinery is available and delivery time in one month.

List of the Machinery:

S.No Type of Machine Rate
1. Centre Lathe Machine
2. Welding transformers
3. Gas Welding Sets
4. 300.00
Drilling Machines
5. DE Bench Grinders
6. Power hacksaw
7. Air Compressors
8. Testing Equipments
9. Electricals and Erection
Total

Working Capital: The unit requires working capital of Rs.50.00 lakhs need in the project cost

DETAILED NOTES ON MEANS OF FINANCE

CAPITAL: The proposed capital is works out for Rs.222.50 ie., 27.60% of the total project cost
of Rs.675.00 lacs

TERM LOAN: The unit desires to avail Term Loan of Rs. 452.50 Lacs. from Bank/Financial
Institute to meet part cost of the project cost, which works out to 72.40 % of the total project
cost of Rs. 675.00 Lacs. The amount would be repayable in 28 quarterly installments of Rs.
16.16 Lacs each with a moratorium of nine months from the date of commencement of
Commercial Production. However, the interest on the term loan would be payable as and
when it is applied on the account. The detail of the repayment programmed is placed in this
report.

W O R K I N G C A P I TA L L O A N :
The unit is eligible for working capital loan (cash credit limit) of Rs
150.00 lacs in this project.
UTILITIES AND SERVICES

POWER:

The Unit requires 150 H.P. of power supply under H.T. Limits.

No problems are anticipated with regard to obtaining of power

supply.

WATER:

The Unit requires 1000 Liters of water per day, for domestic

purpose. A provision is made for bore well and overhead tank

in the scheme under the head Civil Works.

EFFLUENTS:

There are no harmful effluents generated in the process.

Pollution free industry. No approval is required.

TRANSPORTATION:

The proposed Unit is located after procurement of land at A

Block, Autonagar, APIIC, Visakhapatnam. There is no problem

for transportation of raw material and finished goods.

MANPOWER REQUIREMENTS:

The Unit will be employing 36 No of workers besides 9 No of

administrative staff. All the above persons can be recruited

locally without any difficulties.

 SWOT ANALYSIS

(A) Strength:

1) The unit is proposed at A Block, Autonagar, APIIC, Visakhapatnam dist .

2) The Promoters have studied and got knowledge in manufacturing of product and its
marketing.
4) Availability of Labour.
5) Availability of raw material

B) Weakness:
The Unit has to compete with the existing units. However, being on of its kind and having
good market potential they can compete with them. The Unit is one of its kinds in the area
where the market potential as well as raw material is substantial.

(C) Threats:
The proposed unit is a new unit local market. In balance, there is adequate market share
for the unit in view of the demand supply gap. The unit would be in a position to counter in
the threats if any, because of Government encouragement in and also being a small-scale
industry.
PROPOSED PLANT LAYOUT